
Sweet Oil
Putin and MBS hold telephone talks
Price cap on Russian oil by December- US Treasury hopes
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman spoke by phone on Thursday and underlined the importance of further cooperation within the OPEC+ group of oil producers, the Kremlin said. The phone call comes just six days after US President Joe Biden’s high profile visit to the oil rich kingdom to beg for more oil production.
On June 2, OPEC+, which brings together the Organization of the Petroleum Exporting Countries with other producers led by Russia, agreed a larger-than-expected rise in output, a step welcomed by Biden after the United States had called for more supply. The Saudis apparently consulted Moscow before agreeing to a modest production increase.
“The current situation on the world oil market was considered in detail. The importance of further coordination within the framework of OPEC+ was emphasised,” the Kremlin said in a readout of the call. “It was noted with satisfaction that the countries participating in this format are consistently fulfilling their obligations in order to maintain the necessary balance and stability in the global energy market.” Biden had left the oil rich kingdom empty handed after the Saudis said any oil production to bring down prices will have to be agreed by OPEC+ members when they meet August 3.
The US Treasury Department on Wednesday hoped a price cap on Russian oil will come into force in December when European ban on insuring tankers carrying Russian crude comes into force. The Western allies are hoping to cap Russian oil at $40 to $60 a barrel so as to reduce Russian funding for its military operation in Ukraine while also bringing down fuel costs.
Many market analysts say this is insane. “What’s likely to happen is that Russia will restrict its production and create an artificial shortage in the market” Gal Luft the director of a global security think tank told CNBC on Monday. “Those Europeans and Americans that are talking about $40 a barrel, what they’re going to get is $140 a barrel.”
“Russia will not export oil to the world market if the price is capped below the cost of production.” Deputy Prime Minister of Russia Alexander Novak told Russian TV.
Source CNBC/Reuters/TASS
About Post Author
felastory
Share this:
- Click to print (Opens in new window)
- Click to share on LinkedIn (Opens in new window)
- Click to share on Reddit (Opens in new window)
- Click to share on Tumblr (Opens in new window)
- Click to share on Pinterest (Opens in new window)
- Click to share on Pocket (Opens in new window)
- Click to share on Telegram (Opens in new window)
- Click to share on WhatsApp (Opens in new window)
- Click to share on Skype (Opens in new window)
- Click to email a link to a friend (Opens in new window)
More Stories
MBS Threatens Biden
Saudi Crown Prince threatens to damage the US economy after row with US President Joe Biden over cuts in oil...
Significant Losses
American officials tell CNN that Kiev has suffered significant losses in its counteroffensive as Russian Defence Minister says the Ukrainian...
Russian Region Flooded
Kherson Region flooded after Ukrainian cannon artillery and HIMARS missile destroyed hydroelectric dam's floodgates The Kakhovka hydroelectric dam in Russia’s...
Dead or Alive?
Kiev denies its intelligence chief Kirill Budanov was killed in a Russian airstrike dismisses reports of his death as "disinformation"...
FBI Spy Found Dead
Robert Hanssen a former FBI agent who spied for the Soviet Union and later Russia for more than 20 years...
Forced to Retreat
Ukrainian forces on counter offensive in the Donbass forced to retreat by Russian forces after failing to breakthrough defence lines...
Average Rating